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Here’s a scary statistic. According to Gartner, 55%-75% of ERP projects fail.
Implementing an Enterprise Resource Planning (ERP) system is a significant investment for any organization. So when you get a year or so in and realize that it is not gaining results like you hoped it can be very disappointing.
But your business doesn’t have to fall trap to the harsh stat. Many of these failures can be traced back to poor training.
In this blog, we’ll explore the importance of ERP training and best practices to set your employees up for success.
Knowing what an ERP is is different than knowing how to use one. In one survey, 83% of companies said that their top management understands what’s happening in their business. However, only 23% of them said their top managers have the knowledge to use what they know effectively.
So how is ERP training important to the success of your business?
ERP systems integrate various business processes, including finance, HR, manufacturing, supply chain, services, procurement, and others. Proper training ensures that employees understand these processes and how they interconnect within the system.
This knowledge helps employees perform their tasks more efficiently and contributes to smoother operations across the organization.
When employees are well-trained in the ERP system, they understand their roles and responsibilities better. This clarity fosters a culture of accountability, as everyone knows what is expected of them and how their work impacts the organization’s overall performance.
Accountability leads to improved performance and a more cohesive work environment.
Training helps employees become proficient in using the ERP system, reducing the time they spend on administrative tasks and minimizing errors.
As employees become more efficient, their productivity increases, leading to faster turnaround times and improved customer satisfaction. The result is a more agile and responsive organization.
ERP systems provide real-time data and analytics, which are crucial for informed decision-making. When employees are trained to use these tools effectively, they can access accurate information quickly and make better decisions.
This capability is especially important in today’s fast-paced business environment, where timely and informed decisions can give organizations a competitive edge.
So now that we understand why you should invest in your ERP training, let’s discuss what steps to take for effective training. Following these best practices will ensure your business’s ERP projects flourish.
Not all employees need to know every aspect of the ERP system. In fact, it’s a waste of their time and your money for them to sit there and learn about features that they will never touch.
Role-based training ensures that employees learn the specific functionalities and processes relevant to their job roles. This approach makes training more efficient and relevant, allowing employees to apply what they’ve learned directly to their tasks.
ERP implementation often involves significant changes to business processes and workflows.
Aligning training with your change management strategy helps employees understand the reasons behind the changes and how the ERP system supports new ways of working.
This alignment reduces resistance to change and enhances user adoption.
ERP training should focus on how the system supports your unique business processes. Generic training on the ERP software’s features is not enough and wastes time on things you won’t use.
Employees need to understand how to perform their specific tasks within the context of your organization’s workflows. Customizing training to reflect your business processes ensures that employees can use the system effectively from day one.
We don’t have to tell you, your brain doesn’t work the same as when you were 20 years old in college. Therefore you need to adjust any teaching methodology to adult learning.
Malcolm Knowles, a well-known researcher says there are 6 principles to adult learning:
Use these principles to guide your ERP training to ensure your employees can retain the knowledge.
Learning from other users’ experiences can be invaluable. Your ERP vendor should have customer programs that allow users to meet up with each other.
These programs provide opportunities to share best practices, troubleshoot common issues, and gain insights into how other organizations leverage their ERP systems.
Peer learning can complement formal training and provide real-world examples and solutions that are directly applicable to your business context.
Partnering with experienced ERP consultants can make a significant difference in the success of your training program. These experts bring in-depth knowledge of the ERP system and best practices for training.
They can provide tailored training sessions and resources that address your organization’s specific needs.
To save money, find an ERP vendor that offers support services such as training so you don’t have to pay excessive consultant fees.
ERP training should not be a one-time event. As your organization grows and evolves, so will your use of the ERP system. Ongoing training ensures that employees stay updated on new features, enhancements, and best practices.
Regular refresher courses, advanced training sessions, and training resources help employees continually improve their skills and adapt to changes.
The true value of an ERP system can only be realized when your employees are adequately trained to use it effectively.
At ECI, we understand the critical role that effective ERP training plays in the success of your organization.
Our comprehensive support services include training designed to equip your employees with the knowledge and skills they need to maximize the benefits of your ERP system.